Category Archives: LED Manufacturing

March 30, 2012 — Barclays Capital finds that light-emitting diode (LED) manufacturing and materials patents will soon run out, potentially draining value from material/chip/package suppliers and turning LEDs into commodities. These financial and market dynamics take-aways were gleaned from the Intertech Pira Phosphor Summit, a conference on phosphors being used in the LED industry.

For Barclay’s update on phosphor technologies, gleaned from the conference, read Phosphor trends for LED manufacturing

LED-related patents are buoying the top LED makers selling to lighting companies; however, core LED patents will expire in the next 4-5 years, leading to more intensified competition. Top LED makers — Cree, Nichia, OSRAM, and Lumileds — are the go-to sources for global lighting manufacturers — GE, Philips, OSRAM — thanks to strong patent protection. Barclays notes that cross-licensing arrangements between these LED makers make it difficult to gauge precisely when this patent position begins to erode.

Some Korean and Taiwanese LED makers — Epistar, Seoul Semi, Samsung, LG Innotek, and Forepi — have secured licensing agreements or partnerships with the top LED makers, gaining access to Acuity Brands, Zumtobel, Hubbell, Cooper and other top luminaire manufacturers in developed regions. But even as LED manufacturers in Korea, Taiwan, and even China ramp capacity and gradually improve their LED chip/component quality, global lighting conglomerates continue to purchase LEDs only from the top LED manufacturers.

The continual evolution in the LED structure makes it difficult to isolate which core patents remain a true barrier for new entrants (i.e. chip color, phosphor composition, chip structure, color mixing), Barclays notes. LED makers continue to develop novel ways to improve luminous efficacy (lm/W), CRI (color quality), thermal management, lifetime, and cost.

Although it is difficult to compare the various new product claims among the top LED makers (i.e. claims about theoretical luminous efficacy levels are often not apples to apples due to different specs around drive current and voltage, color temperature, LM70 lifetimes), what was clear from the various presentations and comments at the conference was that the top 4 LED makers maintain a noticeable quality leadership relative to Tier 2 and 3 players.

The majority of profits in the LED lighting sector will go to the lighting system manufacturers in the future, given an LED oversupply on the market and LED patents running out. Once core IP is no longer patent-protected, the materials, chip, and package suppliers will watch value fade from their offerings. Lighting companies can still differentiate products through design and distribution, while procuring commodity-like LED components. LED maker Cree’s push downstream "may be a prudent step," Barclays reports, given this trend.

Lighting suppliers and chip makers (Cree, Lumileds, and OSRAM made statements on recent earnings calls) confirm that IP does not make them immune to pricing pressure, with competition among the Tier 1 LED makers fighting for spots with lighting companies.

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March 29, 2012 – BUSINESS WIRE — Kopin Corporation (Nasdaq:KOPN), advanced III-V transistor wafer producer, achieved record 1290cm2/V.s electron mobility and 240ohms/square sheet resistance results from gallium nitride (GaN)-based high electron mobility transistor (HEMT) materials.

The advanced GaN-based materials can improve performance of next-generation power amplifiers and power switching converters. A range of new applications require "high-frequency, high-voltage, high-power, and/or high-temperature operation," noted Dr. John C.C. Fan, Kopin president and CEO. Also read: LED makers could diversify with GaN power electronics production

Results were published in the Applied Physics Letters of the American Institute of Physics: Laboutin et al., Applied Physics Letters, Vol. 100, p. 121909, March 23, 2012.

Kopin used indium gallium nitride (InGaN) as the conducting layer in HEMT structures grown on sapphire and silicon carbide (SiC) substrates. The InGaN channel layer provides a back-channel barrier for electron confinement that GaN does not offer. This enables deep sub-micron gate length devices to achieve ultra-high-frequency operation.

To prevent InGaN layers from becoming very rough during growth, Kopin uses proprietary metal-organic chemical vapor deposition (MOCVD) growth processes.

Kopin Corporation makes mobile computing headsets, ruggedized military imaging systems, ultra-small liquid crystal displays and heterojunction bipolar transistors (HBTs). Kopin has expertise in heteroepitaxy and III-V transistor wafers. For more information, please visit www.kopin.com.

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March 29, 2012 — Light emitting diode (LED) replacement lamps — used in existing sockets as replacements for legacy lighting sources in residential and commercial indoor applications — will see 30% unit growth 2012-2016, says Strategies Unlimited in its LED Replacement Lamps Market Analysis and Forecast. The global market will grow from $2.2 billion in 2011 to $3.7 billion in 2016, even with an anticipated 14%/year decline in average selling prices (ASP).

LEDs remain in oversupply on the market, which will benefit lighting product manufacturers. Governmental subsidies that aim to advance the adoption of LED lighting will also spur growth.

While 2011 saw replacement LED purchases driven mostly by commercial applications in developed economies, this trend will reverse to developing countries as the construction sector picks up. China is expected to adopt LED replacement units at a 44% compound annual growth rate through the forecast period — the highest for any region.

LED replacements for linear fluorescent lamps yielded the highest units sales numbers in China and Japan; between 2010 and 2011 the average selling price declined at 23%. The U.S. and European markets yielded fewer sales due to stricter requirements for product quality.

Strategies Unlimited conducts research on the LED market as is a research unit of PennWell Corporation, a global media and information company. PennWell’s many brands include LEDs Magazine, Solid State Technology, and Laser Focus World.

For more information on report availability, contact Tim Carli, sales manager at +1 650 946-3163; [email protected], or go to www.strategies-u.com.

March 29, 2012 — Light emitting diode (LED) revenues are slowing down in 2012, after two years of remarkable growth, according to Strategy Analytics. LED fab equipment spending and epitaxial substrate demand in the LED sector will decline in 2012.

Equipment manufacturers like AIXTON have recently reported that inherent softness in LED demand was being masked by substantial funding from Asian governments. Despite the demand weakness, the industry is developing new products with an eye on higher-performance and lower-cost LEDs, said Asif Anwar, director, Strategy Analytics Strategic Technologies Practice. The industry is preparing for "the next wave of LED adoption."

This wave appears to be commercial and residential LED lighting, said Eric Higham, director of the Strategy Analytics GaAs and Compound Semiconductor Technologies Service, who notes that the LED industry grows in cycles. “The first phase involved backlighting for small consumer devices, like mobile handsets. These solutions have evolved to meet the needs of laptop, television, electronic sign and automotive applications and the next wave for LED adoption appears to be commercial and residential lighting.”

The Strategy Analytics viewpoint, "Compound Semiconductor Industry Review January 2012: Optoelectronics, Materials & Equipment," summarizes financial, product, contract and employment announcements from major optoelectronic material, device and equipment suppliers in January 2012, categorizing by material and equipment, laser, LED and compound photovoltaic activity. The report captures announcements for companies such as AIXTRON, Soitec, Sumitomo Electric, AXT, IQE, Oclaro, Cree, Renesas Electronics, GigOptix, Avago Technologies, JDSU, Lumileds and First Solar. Access the report at http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=7210

March 22, 2012 — Strong demand for micro electro mechanical system (MEMS)-based sensors, CMOS image sensors, light-emitting diodes (LEDs), fiber-optic laser transmitters, and power transistors enabled the optoelectronic, sensor/actuator, and discrete (OSD) semiconductors market to grow by 8% in 2011, hitting a new record revenue of $57.4 billion, according to IC Insights’ 2012 Optoelectronics, Sensors/Actuators, and Discretes (O-S-D) Report.

Collective sales growth of OSD devices (8.4%) surpassed IC growth (0.4%) in 2011, and has in 3 of past 4 years. OSDs will grow faster than the IC market in 2012 as well, for the third straight year. Collectively, OSD devices accounted for 17.9% of the world’s $320.8 billion in semiconductor sales in 2011 compared to 14.7% of total revenues in 2001. OSD products are expected to represent about 18.2% of the world’s $339.0 billion semiconductor market in 2012, based on IC Insights’ forecast. OSD revenues will grow at a 2011-2016 CAGR of 10.6%, while IC sales are expected to rise by an annual average of 9.4%.

OSD growth was not steady throughout 2011 — most product categories saw "a substantial pullback" toward the end of the year. In 2012, expect 7% growth in total OSD sales to $61.6 billion, with nearly all product categories experiencing modest growth.

Figure. Optoelectronics, sensors, and discretes (OSD) market growth. SOURCE: IC Insights.

 
2012 growth rates by segment:
Acceleration/yaw sensors +21%
laser transmitters +18%
pressure sensors +15%
magnetic-field sensors +14%
actuators (+11%)

The sensor/actuator market is projected to grow at the highest rate among the semiconductor segments in the forecast period with its CAGR being 16.4% between 2011 and 2016.  IC Insights anticipates stronger and more consistent growth in the sensor/actuator market due to higher volume shipments of these devices in consumer electronics and portable systems.  In addition, the automotive industry continues to gain strength after the 2008-2009 recession, and that is adding additional stability and growth momentum to the sensor/actuator market segment.

Solid-state lamps grew 16% in 2011, driven by high-brightness LED (HB-LED) adoption. This application will grow another 10% in 2012, hampered by price erosion from a buildup of inventories, slow LED-backlit display applications growth, and slow adoption of room-lighting products worldwide. Expect relatively slow sales growth in high-brightness white LEDs until 2014, when solid-state lights finally price in the same range as conventional lighting products in mainstream end-user markets, says IC Insights.
 
Motion-activated user interfaces, embedded automatic controls, and location-aware features in cellphones and portable electronics will continue to drive up sales of sensors built with MEMS technology. MEMS products like accelerometers and gyroscopes will products hit the $6 billion revenue mark in the next 5 years.

Power transistors and related discrete semiconductors are climbing steadily to record sales levels, shows the OSD report’s 5-year forecast, with drivers in the spread of battery-operated electronics, renewable energy systems, hybrid and electric vehicles, and the global emphasis on reductions in electricity consumption. The discretes segment, which is composed of low-priced commodity devices, actually outperformed the market growth of ICs in 2006-2011. The discretes sales volume grew at a 5-year CAGR of 5.6% compared to 3.3% CAGR in IC revenues. By 2016, power transistors are expected to account for 60% of total discrete sales.

CMOS image sensors shook off excess inventories and pushed beyond $6 billion in sales with 29% growth in 2011. CMOS image sensors are also expected to see another wave of strong growth from new imaging applications and machine-vision designs, which will include automotive safety systems and intelligent surveillance networks.

The 2012 edition of the O-S-D Report includes detailed analysis of trends and growth rates in the optoelectronics, sensors/actuators, and discretes market segments. The seventh annual edition of the report contains a detailed forecast of sales, unit shipments, and selling prices for more than 30 individual product types and categories through 2016. View http://www.icinsights.com/services/osd-report/ for more information.

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March 23, 2012 — About half as many metal organic chemical vapor deposition (MOCVD) tools for gallium nitride (GaN) light-emitting diode (LED) manufacture will ship in 2012 than last year, IMS Research reports in its most recent GaN LED Quarterly Supply and Demand report. This means 342 GaN LED MOCVD reactors in 2012 vs 654 in 2011.

The forecast is a downward revision from IMS Research’s mid-year 2011 forecast, which showed 569 GaN MOCVD tools shipping in 2012. Last month, Barclays Capital set its 2012 MOCVD shipments expectations at 300-400 tools.

Even with this severe market decline, 2012 should see 52% higher MOCVD spending than 2009 (342 reactors vs 224). Q1 and Q2 2012 will see the lowest MOCVD shipment levels, IMS Research reports. Expect a modest recovery in Q3 and Q4, as LED makers add capacity to meet demand growth in solid state general lighting applications in 2013.

The first 3 quarters of 2012 will see around the same number of MOCVD reactor orders as just 1 peak quarter, said IMS Research analyst Jamie Fox. The market peaked in Q3 and Q4 2010, with 239 and 238 GaN reactors shipments respectively.

LED TV manufacturing ramp ups energized MOCVD capex in 2009-2010. MOCVD spending remained healthy in 2011 thanks to new Chinese LED manufacturers and Chinese-Taiwanese joint ventures entering the market with government subsidies to buy MOCVD reactors. This exacerbated an emerging oversupply of LEDs, which, combined with subsidy expirations in China, stalled MOCVD shipments in late 2011-2012.

Figure. MOCVD units shipped, 2009-2012. SOURCE: IMS Research.

Several factors are to blame for the LED oversupply: weaker-than-expected demand due to global macroeconomic weakness, slower than expected growth in LED TV penetration, new backpanel designs with fewer LEDs per panel, and the small size of the LED lighting market.

China accounted for 76% of the 2011 market, reaching a peak of 92% in Q4 2011. "Apart from China, the market is extremely quiet. Without the Chinese growth, the market would have almost completely collapsed," Fox said. Big orders in China actually pushed Q4 2011 shipments up quarter-over-quarter (Q/Q). This was a short-term improvement, however; Q1 2012 will see shipments of around half of Q4’s.

Veeco was the top MOCVD supplier in 2011, although strong demand pushed Aixtron to the lead in Q4. The top MOCVD tool buyer of 2011 was Sanan. IMS Research predicts that Elec-Tech will buy the most MOCVD tools in 2012.

Despite a trend to 4" and 6" wafers globally at Tier 1 manufacturers, 2" remains in the majority due to China’s manufacturing lines.

IMS Research supplies market research and consultancy to the global electronics industry. Access reports at http://imsresearch.com.

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March 23, 2012 — SEMI is seeking papers for technical sessions and presentations at the upcoming SEMICON Europa 2012, October 9-11 in Dresden, Germany. Technical presentation abstracts are due April 30.

SEMICON Europa serves the global microelectronics industry in Europe, with new products and technologies from across the microelectronics supply chain: electronic design automation, device fabrication (wafer processing), and final manufacturing (assembly, packaging, and test). SEMICON Europa also features emerging markets and technologies, including micro electro mechanical systems (MEMS), flexible electronics and displays, nano-electronics, solid state lighting (LEDs), and related technologies.

SEMICON Europa 2012 plans to host more than 100 hours of technical sessions and presentations on the design and manufacturing of semiconductors, MEMS, printed and flexible electronics, and related technologies:

• International MEMS/MST Industry Forum, 8-9 October; theme: “New Dynamics in the MEMS Industry”

• Advanced Packaging Conference (APC), 9-10 October; theme “Packaging Solutions for the New Technologies”

• 14th  European Manufacturing Test Conference (EMTC), 10-11 October; theme: “Overcoming New Test Challenges through Cooperation and Innovation”
 
Submit a 200-400 word abstract of original, non-commercial and non-published material to [email protected], indicating in the subject line of the e-mail: “TEST Call for Papers,”  “MEMS Call for Papers” or “Advances Packaging Call for Papers.” The deadline for submitting abstracts is April 30, 2012. Abstracts must clearly detail the nature, scope, content, organization, key points and significance of the proposed presentation.  The abstract should also contain the main author contact details like job title, company, address, telephone and e-mail, with a short biography.

For more information about the conference or submitting abstracts, including guidelines and requirements, visit http://www.semiconeuropa.org/ProgramsandEvents/CallforPapers, or contact Carlos Lee, SEMI Europe, Tel. +32 2 6095334. SEMI is a global industry association serving the nano- and microelectronic manufacturing supply chains.

March 22, 2012 — Linde LienHwa (LLH) China will be the exclusive gas supplier to Kaistar, a joint venture of LED maker Epistar Taiwan and China Electronics Corporation (CEC). LLH China will deliver bulk gases and high-purity ammonia (NH3) to Kaistar’s new light-emitting diode (LED) production facility in Xiamen, China.

Kaistar’s new facility will be constructed near to Linde’s ultra-high purity ammonia plant in Xiamen, which was built in 2010 as the first operating plant in China to produce ultra-high purity ammonia. Ultra high-purity ammonia increases LED efficiency by eliminating oxygen, which can contain molecules such as moisture. Linde’s ammonia purification plant, which has an initial capacity of 500 tonnes per year, produces ultra-high purity ammonia at 7N (99.99999%) levels.

Also read: Chinese LED subsidy update

Kaistar will use Linde’s new SPECTRA PURE high flow ammonia delivery system for high-volume manufacturing, with integral purification.

Linde LienHwa (LLH), a joint venture in mainland China between The Linde Group and LienHwa MiTAC Group of Taiwan, is dedicated to the supply of ultra-high purity gases and the delivery of engineering projects and services to the semiconductors, TFT-LCD, photovoltaic and LED industries. Linde LienHwa (LLH) Taiwan, The Linde Group’s joint venture with LienHwa MiTAC Group of Taiwan, is already one of Epistar Taiwan’s biggest suppliers of high purity gases. The Linde Group is a world-leading gases and engineering company. For more information, visit our website at www.linde.com or www.linde-gas.com/electronics.

Kaistar is a Joint Venture company by Epistar Corporation (Taiwan), China Electronics Corporation (CEC) and TPV group etc., with initial invested capital of USD 120 million.

Epistar Corporation focuses on developing, manufacturing and marketing high brightness Light Emitting Diode (HB-LED) products. For further information, visit http://www.epistar.com.tw/

China Electronics Corporation (CEC) is one of the key state-owned conglomerates directly under the administration of central government, and the largest state-owned IT company in China. For further information, please visit: http://www.cec.com.cn/

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March 19, 2012 — Semiconductor fab equipment supplier SUSS MicroTec launched the RCD8 manual resist coat and develop platform for R&D and low-volume use in micro electro mechanical system (MEMS), semiconductor packaging, light-emitting diode (LED) and other applications.

The RCD8 can convert from a spin coater, with the proprietary GYRSET closed cover coating technology, to a spray developer. The convertion takes minutes. Install options range from basic manual operation to semi-automated to puddle & spray developer.

The processes developed on the manual RCD8 are easily transitioned to a SUSS MicroTec production tool.

The RCD8 combines SUSS’ multiple dedicated Delta Series tools that served specific applications in MEMS, advanced packaging, and LED fab or the R&D market. All necessary coating and developing processes for these applications are incorporated.

The GYRSET rotating closed cover coating option can be integrated into the RCD8 spin coating module to widen the process window and reduce consummables use on various photoresists and applications. GYRSET allows square substrates and pieces to be coated with a homogenous resist thickness.

Various options can be added in the field to adapt with process changes. The RCD8 hosts a large variety of available chucks and configurations.

SUSS MicroTec, listed on TecDAX of Deutsche Boerse AG, is a leading supplier of equipment and process solutions for microstructuring in the semiconductor industry and related markets. For more information, please visit http://www.suss.com.

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March 19, 2012 – BUSINESS WIRE — CVD Equipment Corporation (Nasdaq:CVV) purchased a new facility in Central Islip, NY, doubling the space for its chemical vapor deposition (CVD), gas control, and other wafer fab equipment assembly.

The new facility also unifies CVD Equipment Corp.’s Application Laboratory in one location, noted Leonard Rosenbaum, president and CEO, who said that the new space will enable "multiple growth opportunities." The Application Laboratory will focus on nano materials manufacturing, pilot/demo lines for nano materials usage in macro-materials and sub-assemblies, and technology transfer/partnerships around nano materials. These product development efforts will be marketed through CVD Materials Corporation, a wholly owned subsidiary.

CVD Equipment Corporation (NASDAQ:CVV) makes equipment for the development, design and manufacture of advanced electronic components, materials, and coatings. Customers research, design and manufacture semiconductors, solar cells, graphene, carbon nanotubes (CNTs), nanowires, light-emitting diodes (LEDs), micro electro mechanical systems (MEMS), smart glass coatings, battery and/or ultra capacitor materials, medical coatings, industrial coatings and equipment for surface mounting of components onto printed circuit boards (PCBs).

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